My property manager sent me a 1099 NEC instead of a 1099 MISC and she will not send me the corrected 1099. Please Help!

[55Chevy]

I decided to try renting my property during the last year of ownership.  I used a property management company to help with this process. 

She just basically collected the rent from the tenant, took her fee, and then deposited the remaining in our joint account that my wife and I use.

Instead of receiving a 1099 MISC she had sent me a 1099 NEC.  I have reached out to her to try and get a corrected form sent out and she is not responding to any phone calls, messages, emails, etc.

From what I have read on here I should have gotten a 1099 MISC.  I went through the TT Premier software and in fact this is what I should have gotten because it prompts me to enter values for management fees and then goes in to repair work and so forth.

Since she is not responding to me, and I am stuck with a 1099 NEC instead of the 1099 MISC that I should have received how do I correct this?  Can I report it as a MISC and note this to the IRS somehow?  I don't know what to do since my property manager is the only one that can correct this.

Please help!

Thanks so much in advance for any help or guidance that anyone can give or contribute.  Has anyone else ever had this happen?

Thanks again!

[Mike9241]

Disputing an incorrect 1099

If the issuer of an erroneous 1099 refuses to correct its mistake, you'll need to include an explanation on your tax return and attach documentation in support of your assertion. Let's say you receive a 1099 showing you were paid $20,000 from a given company, when in reality you were only paid $15,000. You can't just list that $15,000 on your tax return and call it a day, because the IRS will notice the discrepancy and most likely go after you for the difference. At the same time, you shouldn't simply pay taxes on an extra $5,000 you never received.

Instead, what you'll need to do is list the $15,000 but attach a statement explaining the overpayment. That statement should include documentation in support of your claim, such as copies of canceled checks and invoices. You should also include proof that you attempted to reach the issuer, and that the issuer either failed to respond or refused to comply.

While the latter steps clearly require a bit of extra legwork, you'll need to take them if you want to avoid getting audited or improperly taxed. Unfortunately, when it comes to 1099s, mistakes do happen, but if you don't address them, you'll be the one who ultimately loses out.

follow this advice since you can't get the lady(?) to issue the correct form. you'll have to mail in your return.

use a method where you can track it or get proof of delivery. if you are expecting a refund be prepared for a long delay.

and by the way, if you paid her more than $600 did you issue her a 1099-NEC.

[55Chevy]

No I did not and had no idea I needed to do anything on my end.  This was my first time renting and was taking her word as to what steps were needed along the way.  Her fees were roughly $150 per month which she took from the tenants rent and then remaining went to us.

[Critter-3]

Here is an option for this situation:

Step 1 : 

Sch E ... all the rent  paid by the tenants   is reported on the Sch E and then you deduct all the expenses which will include their management fee.  FYI ... stop using them if they will not correct their blatant error. 

Step 2 :  

Then report the 1099-NEC income on a Sch C ... just fudge in the required info just to get by and then make ONE expense entry in the misc expenses section ... name it "income already reported on the Sch E" to zero out the income reported on the wrong form.   This method should keep you on the good side of the IRS.  

[Carl]

In your letter of explanation, make sure you clarify the steps you took to get the property manager to cancel the 1099-NEC and issue the correct 1099-MISC form. Also provide complete contact information for that property manager so the IRS can find and contact them easier. TYpically, there's a fine for the issuer of an incorrect form. But being that 2020 is the first tax year for the 1099-NEC, they may waive the fine. Not that you care really. You just want to ensure they issue the correct form next year.